Adobe's Acquisition of Figma Faces Extended EU Antitrust Investigation Amid Global Tech Scrutiny

Adobe Inc ADBE will likely face a lengthy antitrust investigation in the EU for its $20 billion deal to acquire rival Figma.

The European antitrust regulators are preparing to launch a formal investigation to analyze concerns concerning less innovation and higher prices, Financial Times cites familiar sources.

The U.K. launched an initial probe into the deal in May while the U.S. Department of Justice prepares a lawsuit to block the transaction. 

Also Read: OpenAI, Google, and Adobe in Talks with Media Outlets for AI Training Content Subscription Deals

Figma is a maker of cloud-based design tools that promise better performance than Adobe's software, including the image editing system Photoshop.

Last February, Brussels regulators said the transaction needs the EU's clearance despite the deal's European sales being too low to require an investigation typically.

Adobe's offer for Figma values the company 50 times its annual recurring revenue. 

The company had voiced concerns over "lengthy reviews" of the deal as scrutiny intensified on tech transactions worldwide and looked to highlight the distinct markets in which the two businesses operate.

Internal research found that just 10% of Photoshop users also used Figma, emphasizing the limited user overlap, said multiple people. 

Price Action: ADBE shares traded lower by 0.88% at $490.80 premarket on the last check Tuesday.